Segment Information

6 Months Ended

Mar. 31, 2018

9. Segment Information

As discussed more fully in Note 1, based on the nature of its products and services, the Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing, which also represent reportable segments of the Company. Information as to each of these operations is set forth below. The Company evaluates performance based on several factors, of which the primary financial measure is operating income (loss) before non-cash depreciation of tangible assets and non-cash amortization of intangible assets (“OIBDA”). The Company has supplemented its analysis of OIBDA results by segment with an analysis of operating income (loss) by segment.

The accounting policies of the Company’s business segments are the same as those described in the summary of significant accounting policies included elsewhere herein. The Company accounts for intersegment sales at fair value as if the sales were to third parties. While intercompany transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses recognized by the segment that is counterparty to the transaction) are eliminated in consolidation, and therefore, do not themselves impact consolidated results.

					Corporate
	Recorded		Music		expenses and
	Music		Publishing		eliminations			Total
Three Months Ended	(in millions)
March 31, 2018
Revenues	$	791	$	174	$	(2	)	$	963
Operating income (loss)		80		41		(38	)		83
Amortization of intangible assets		38		17		—			55
Depreciation of property, plant and equipment		9		2		3			14
OIBDA		127		60		(35	)		152
March 31, 2017
Revenues	$	686	$	145	$	(6	)	$	825
Operating income (loss)		69		41		(32	)		78
Amortization of intangible assets		34		16		—			50
Depreciation of property, plant and equipment		9		1		3			13
OIBDA		112		58		(29	)		141

					Corporate
	Recorded		Music		expenses and
	Music		Publishing		eliminations			Total
Six Months Ended	(in millions)
March 31, 2018
Revenues	$	1,695	$	317	$	(4	)	$	2,008
Operating income (loss)		209		40		(76	)		173
Amortization of intangible assets		74		34		—			108
Depreciation of property, plant and equipment		17		3		6			26
OIBDA		300		77		(70	)		307
March 31, 2017
Revenues	$	1,483	$	269	$	(10	)	$	1,742
Operating income (loss)		192		39		(59	)		172
Amortization of intangible assets		69		32		—			101
Depreciation of property, plant and equipment		16		3		6			25
OIBDA		277		74		(53	)		298